BILL ANALYSIS C.S.H.B. 1479 By: Hilderbran (Barrientos) Finance 5-16-95 Senate Committee Report (Substituted) BACKGROUND Four years ago, a rider to the appropriations bill allowed Texas high school students who completed their graduation requirements in three years to receive a tuition and fee waiver at an institution of higher education and forgo their fourth year in high school. This provision expired two years ago. PURPOSE As proposed, C.S.H.B. 1479 provides a tuition and fee waiver at institutions of higher education for certain Texas high school students. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Texas Higher Education Coordinating Board under SECTION 2 (Sec. 56.209(a), Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 54D, Education Code, by adding Sections 54.212, 54.213, and 54.214, as follows: Sec. 54.212. ONE-YEAR EXEMPTION FOR CERTAIN AFDC STUDENTS. Exempts a certain student from the payment of tuition and fees for the first academic year in which the student enrolls at an institution of higher education (institution) if the student meets certain criteria. Sec. 54.213. FUNDING EXEMPTIONS. (a) Authorizes an institution to fund tuition exemptions under Section 54.212 or 54.213 from local funds or from funds appropriated to the institution. Provides that an institution is not required to provide tuition exemptions beyond those funded through appropriations specifically designated for this purpose. (b) Requires savings to the foundation school fund that occur as a result of the Early High School Graduation Scholarship program (program) created in Chapter 56K, and that are not required for the funding of state tuition credits under that program to be used to provide tuition exemptions under Section 54.212. Requires payment of funds under this subsection to be made in the manner provided by Section 56.207 for tuition credits under Chapter 56K. SECTION 2. Amends Chapter 56, Education Code, by adding Subchapter K, as follows: SUBCHAPTER K. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM Sec. 56.201. PROGRAM NAME. Sets forth the name of the program. Sec. 56.202. PURPOSE. (a) Sets forth reasons for the creation of the program. (b) Dedicates a portion of the savings to the Foundation School Program that occur as a result of the program to state tuition credits provided by the program. Sec. 56.203. ELIGIBLE PERSON. Sets forth criteria for a person to be eligible for the program. Sec. 56.204. ENTITLEMENT; MATCHING CREDIT. (a) Entitles an eligible person under the program to $1,000 in state tuition credits at a Texas public or private institution of higher education. (b) Provides that the use of a credit at a Texas private institution is contingent on a private institution's agreement to match the state tuition credit. (c) Provides that a person eligible for a tuition credit under the tuition credit program authorized by law, who did not receive a credit under that program is eligible for and entitled to $1,000 in state tuition credits under this subchapter. Provides that this subsection expires September 1, 2005. Sec. 56.205. ISSUANCE OF CERTIFICATE. Requires the Texas Higher Education Coordinating Board (coordinating board) to provide a certificate for state tuition credits to an eligible person. Sec. 56.206. USE OF TUITION CREDIT. (a) Requires the institution to apply to the person's tuition charges for the enrollment period a certain amount on enrollment of an eligible person in an eligible institution. (b) Requires a private institution to apply the state tuition credit and the matching credit required by Section 56.204(b) in equal amounts. (c) Requires the institution to report certain information to the coordinating board. Sec. 56.207. PAYMENT OF TUITION CREDIT. (a) Requires the coordinating board to distribute to the institution the amount of the state tuition credit applied by the institution. (b) Requires the coordinating board to submit a report that includes certain information to the commissioner of education (commissioner) at least once each year. (c) Requires the commissioner to transfer to the coordinating board, from funds appropriated for the Foundation School Program, an amount sufficient to reimburse the coordinating board for amounts disbursed in payment of state tuition credits during the period covered by the report. Sec. 56.208. FUNDING. (a) Provides that the program is financed under the Foundation School Program. Provides that funding for the state tuition credits is not subject to the provisions of Sections 16.254(e)-(k). (b) Requires the commissioner to reduce the total annual amount of foundation school fund payments made to a school district by a certain amount. (c) Requires a school district that does not receive foundation school fund payments during a year in which the commissioner would otherwise withhold money from the district under Subsection (b) to remit an amount equal to the amount that would be withheld under Subsection (b) to the comptroller for deposit to the credit of the foundation school fund. (d) Requires the commissioner and the foundation school fund budget committee to consider the costs of the program in estimating the funds needed for program purposes. Sec. 56.209. ADOPTION AND DISTRIBUTION OF RULES. (a) Requires the coordinating board to adopt rules to administer this subchapter. (b) Requires the coordinating board to distribute copies of all rules adopted under this subchapter to each eligible institution and to each school district. SECTION 3. Provides that this Act applies beginning with tuition and fees collected for the 1995 fall semester. SECTION 4. Emergency clause. Effective date: upon passage.